Academic literature on the topic 'Residual Income Model'
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Journal articles on the topic "Residual Income Model"
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Cheng, Qiang. "What Determines Residual Income?" Accounting Review 80, no. 1 (January 1, 2005): 85–112. http://dx.doi.org/10.2308/accr.2005.80.1.85.
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This paper investigates the determinants of residual income scaled by book value of equity, i.e., abnormal return on equity (ROE), by analyzing the impact of value-creation (economic rents) and value-recording (conservative accounting) processes on abnormal ROE. I rely on economic theories to characterize economic rents and develop an empirical measure—the conservative accounting factor—to capture the effect of conservative accounting. As expected, industry abnormal ROE increases with industry concentration, industry-level barriers to entry, and industry conservative accounting factors. Also as expected, the difference between firm and industry abnormal ROE increases with market share, firm size, firm-level barriers to entry, and firm conservative accounting factors. Integrating these determinants into the residual income valuation model significantly increases its explanatory power for the variation in the market-to-book ratio.
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Higgins, Huong N. "Forecasting stock price with the residual income model." Review of Quantitative Finance and Accounting 36, no. 4 (June 23, 2010): 583–604. http://dx.doi.org/10.1007/s11156-010-0187-y.
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Dechow, Patricia M., Amy P. Hutton, and Richard G. Sloan. "An empirical assessment of the residual income valuation model." Journal of Accounting and Economics 26, no. 1-3 (January 1999): 1–34. http://dx.doi.org/10.1016/s0165-4101(98)00049-4.
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Kjærland, Frode. "Simple valuation of electric utilities – a comparison of the residual income model and a real options approach." Investment Management and Financial Innovations 13, no. 2 (June 3, 2016): 53–64. http://dx.doi.org/10.21511/imfi.13(2).2016.06.
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Since deregulation of the energy market in Norway, there has been a number of mergers and acquisitions of electric utilities. In all these transactions, the companies have been valued. Many of the transactions have sparked significant controversy (by politicians, consultants and others) who claim that the companies have been sold too cheaply, especially concerning hydropower generating companies. How can business valuation of these enterprises be explained? Real option theory is, in this study, applied in order to explain the value beyond a traditional approach. The residual income model proposed by Feltham and Ohlson (1995) is considered. The empirical analysis shows that an enhancement in explanatory power of 100% is brought about through the introduction of independent variables based on real option theory. This supports the use of real options in helping to explain values in this industry
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Myers, James N. "Implementing Residual Income Valuation With Linear Information Dynamics." Accounting Review 74, no. 1 (January 1, 1999): 1–28. http://dx.doi.org/10.2308/accr.1999.74.1.1.
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Residual income (RI) valuation is a method of estimating firm value based on expected future accounting numbers. This study documents the necessity of using linear information models (LIMs) of the time series of accounting numbers in valuation. I find that recent studies that make ad hoc modifications to the LIMs contain internal inconsistencies and violate the no arbitrage assumption. I outline a method for modifying the LIMs while preserving internal consistency. I also find that when estimated as a time series, the LIMs of Ohlson (1995), and Feltham and Ohlson (1995) provide value estimates no better than book value alone. By comparing the implied price coefficients to coefficients from a price level regression, I find that the models imply inefficient weightings on the accounting numbers. Furthermore, the median conservatism parameter of Feltham and Ohlson (1995) is significantly negative, contrary to the model's prediction, for even the most conservative firms. To explain these failures, I estimate a LIM from a more carefully modeled accounting system that provides two parameters of conservatism (the income parameter and the book value parameter). However, this model also fails to capture the true stochastic relationship among accounting variables. More complex models tend to provide noisier estimates of firm value than more parsimonious models.
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Hong, Kim, and Fakhruddin Nasution. "PENILAIAN HARGA SAHAM PERUSAHAAN PEMBIAYAAN DI BURSA EFEK INDONESIA." Media Riset Akuntansi, Auditing dan Informasi 12, no. 1 (April 8, 2012): 87. http://dx.doi.org/10.25105/mraai.v12i1.589.
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<span>The purpose of multi finance companies’ stock price valuation is to know their intrinsic <span>values by performing fundamental analysis using dividend discount model, free cash flow to the firm model, free cash flow to equity model, and residual income model. Research data uses secondary data in the period of 2006-2010 which consists of Indonesian Stock Price Composite Index (IHSG), and multi finance companies’ stock prices taken from Yahoo Finance; multi finance companies’ financial statements taken from Indonesian Stock Exchange (BEI) reports; multi finance industry data taken from Bapepam-LK. As a result of research, stock of ADMF is fair valued by using the analysis of dividend<br />discount model; undervalued by using the analysis of free cash flow to the firm and free cash flow to equity models; overvalued by using the analysis of residual income model. Stock of BFIN is undervalued by using the analysis of dividend discount, free cash flow to the firm, and free cash flow to equity models; overvalued by using the analysis of residual income model. Stock of MFIN is overvalued by using the analysis of dividend discount<br />and residual income models; undervalued by using the analysis of free cash flow to the firm and free cash flow to equity models. Statistic t-test shows that there are no significant differences to value stock prices using dividend discount, free cash flow to the firm, free cash flow to equity, and residual income models, therefore investment analyst or investor may use one of the chosen stock price valuation model.<br />Keywords: Multi finance companies, Fundamental analysis, Stock price valuation model, Intrinsic value, Required return, Investment risk<br /></span></span>
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Lopes, Alexsandro Broedel. "Valuation properties of accounting numbers in Brazil." Corporate Ownership and Control 1, no. 3 (2004): 31–36. http://dx.doi.org/10.22495/cocv1i3p3.
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This work investigates the valuation properties of accounting numbers in Brazil under three traditional frameworks: earnings capitalization, book value of equity and residual income. The sample was selected from companies traded at the São Paulo Stock Exchange (BOVESPA) from 1995 to 1999, dividing the sample in two groups: companies with preferred and with common shares. My results show that the earnings capitalization model did not perform well for common shares and have a better performance for preferred shares because of the mandatory dividend distribution as a percentage of net income in Brazil and because earnings have no use as information asymmetry reducers in Brazil. The book value model performed better for common shares while residual income had a comparable performance and seems to be the dominant accounting-based valuation model for common shares. For preferred shares the residual income model performs better. The residual income term alone presents no significant difference for the two sets of companies. For both set of companies accounting income did not incorporated economic income.
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Wang, Lixia, and Lining Gan. "Theoretical and Empirical Analysis of Market-Power Adjusted RIM Model." International Journal of Economics and Finance 8, no. 2 (January 24, 2016): 147. http://dx.doi.org/10.5539/ijef.v8n2p147.
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The market power of firms can take an important effect on their value through the influence of residual incomes. Based on Ohlson’s residual income model (RIM model, also called EBO model), the paper puts financial account—unearned revenue to build the new model, market-power adjusted RIM model. Then we make empirical analysis using the data from 2003 to 2011 year in China capital market. The empirical evidence proofs that unearned revenue has an obvious effect on the value of firms. The result shows that the new model has important complementary role to evaluate the firms’ value in China capital market.
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Johnson, Nicole Bastian. "Residual Income Compensation Plans and Deferred Taxes." Journal of Management Accounting Research 22, no. 1 (January 1, 2010): 103–14. http://dx.doi.org/10.2308/jmar.2010.22.1.103.
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ABSTRACT: Residual income is a popular performance metric that is often calculated from financial accounting numbers. Practitioners argue that financial accounting earnings and book value suffer from various biases and should be adjusted prior to the residual income calculation so that the resulting residual income metric will have better incentive properties, but they often disagree about what the adjustments should be. Using the criterion that a residual income performance metric should align owner and managerial investment incentives, I develop a simple investment model to show how financial accounting choices and adjustments must be chosen jointly to achieve incentive alignment. In particular, I examine conflicting recommendations from the practitioner literature about the proper adjustment for deferred taxes and show that more than one adjustment method can achieve incentive alignment if paired with the correct depreciation schedule. Further, I show that relationships among accounting variables introduce constraints that make some policies or adjustments more difficult to work with. The paper concludes with a brief discussion about how the use of sub-optimal adjustments can negatively influence the manager’s investment incentives.
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Baginski, Stephen P., and James M. Wahlen. "Residual Income Risk, Intrinsic Values, and Share Prices." Accounting Review 78, no. 1 (January 1, 2003): 327–51. http://dx.doi.org/10.2308/accr.2003.78.1.327.
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Empirical accounting research provides surprisingly little evidence on whether accounting earnings numbers capture cross-sectional differences in risk that are associated with cross-sectional differences in share prices. We address two questions regarding the risk-relevance of accounting numbers: (1) Are accounting-related risk measures (i.e., the systematic risk and total volatility in a firm's time-series of residual return on equity) associated with the market's assessment and pricing of equity risk? (2) If so, then are these accounting-related risk measures incrementally associated with the market's assessment and pricing of equity risk beyond other observable factors, such as those in the Fama and French (1992) three-factor model? We develop an accounting-fundamentals-based measure of the market's pricing of risk—the difference between actual share price and a residual income valuation model estimate of share value using risk-free rates of return. Our results show that both systematic risk and total volatility in residual return on equity partially explain this pricing differential, and that the explanatory power of total volatility is incremental to the Fama and French (1992) factors—market beta, firm size, and the market-to-book ratio.
Dissertations / Theses on the topic "Residual Income Model"
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Cheng, Qiang. "Essays on the residual income valuation model /." Ann Arbor, MI : UMI, 2003. http://aleph.unisg.ch/hsgscan/hm00095739.pdf.
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Quinta, André Filipe Rodrigues. "Contabilidade e avaliação de empresas : aplicação prática do residual income model." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/17766.
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Mestrado em Contabilidade, Fiscalidade e Finanças EmpresariaisO presente trabalho tem como principal objetivo demonstrar a utilização do Residual Income Model (RIM). O trabalho é desenvolvido tendo uma abordagem teórica e prática da aplicação do Residual Income Model, sendo constituído pelo enquadramento teórico do modelo e de avaliação de empresas, bem como por um business case de aplicação prática do modelo à Airbus. O segundo objetivo é comparar a utilização do RIM com uma das metodologias mais aceites na avaliação de empresas, o Discounted Free Cash Flow to Equity (DFCFE). O caso é assim resolvido pelos dois modelos, o RIM e o DFCFE, de forma a comparar os procedimentos e os resultados obtidos por cada modelo. Para a conceção do business case foram utilizados unicamente dados reais, disponíveis publicamente, e está estruturado de forma a permitir diferentes abordagens e conclusões. O intervalo de preços obtido representa um desvio face à cotação no período de referência de 33% para o RIM e -16% para o DFCFE. Os resultados expõem a dificuldade de implementar os mesmos pressupostos para ambos os modelos, que podem ser influenciados tanto pelos dados considerados como pelos procedimentos utilizados para o forecast, nomeadamente no que diz respeito ao grau de detalhe necessário para os modelos. Ao mesmo tempo, os valores obtidos servem referência de intervalo de preço para o que poderá ser o valor justo da ação da Airbus.
The current project aims to demonstrate the application of the Residual Income Model. The project is based both on a theoretical and practical approach, consisting of a framework regarding the model itself and enterprise valuation, as well as a business case with the practical application of the model to Airbus. The second objective is to compare the model with one of the most accepted methods, the Discounted Free Cash Flow to Equity. Therefore, the case is solved by using two different approaches, the Residual Income Model and the Discounted Free Cash Flow to Equity, in order to compare the procedures and obtained results through each model. For the business case conception, only real and publicly available data was used, and it is structured to allow different approaches and conclusions. The obtained price range represents a variance from the price per share at the reference date of 33% through RIM and -16% through DFCFE. The results disclose the difficulty of implementing the same assumptions for both models, which can be influenced both by the methods used for the forecast as by the considered data, specifically to what regards the degree of detail required for the models. At the same time, the results can serve as a reference for the price range of what might be the fair price of Airbus' shares.
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Sotkasiira, Monica, and Fredrik Enberg. "Aktievärdering : En kvantitativ studie i värdering med Dividend Discount Model och Residual Income Model i förhållande till P/B-tal som referensvärde." Thesis, Södertörns högskola, Institutionen för ekonomi och företagande, 2012. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-16601.
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Brandt, Oskar, and Rickard Persson. "The relationship between stock price, book value and residual income: A panel error correction approach." Thesis, Uppsala universitet, Statistiska institutionen, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-254344.
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In this paper we examine the short and long-term relations between stock price, book value and residual income. We employ a panel error correction model, estimated with Engle & Granger’s (1987) two-step procedure and the single equation methodology. The models are estimated with FE-OLS and the MG-estimator. We find that stock prices adjust previous periods equilibrium error. Further, we find that book value has short and long-term effects on stock prices. Finally, this paper finds mixed results regarding residual incomes impact on stock prices. The MG-estimator finds evidence for a short-term relationship, while the FE-OLS provides insignificant or weak support for short-term effects. FE-OLS and MG-estimator find insignificant or weak support regarding residual incomes long-term effects.
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Reichel, Johannes. "Shareholder Value Drivers in the Financial Industry Empirical Evidence based on the Residual Income Model /." St. Gallen, 2006. http://www.biblio.unisg.ch/org/biblio/edoc.nsf/wwwDisplayIdentifier/02607158001/$FILE/02607158001.pdf.
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Lehmann, Christopher, and Alexander Alfredsson. "Intrinsic Equity Valuation : An Emprical Assessment of Model Accuracy." Thesis, Södertörns högskola, Institutionen för samhällsvetenskaper, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-30377.
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The discounted cash flow model and relative valuation models are ever-increasingly prevalent in today’s investment-heavy environment. In other words, theoretically inferior models are used in practice. It is this paradox that has lead us to compare the discounted cash flow model (DCFM), discounted dividend model (DDM), residual income-based model (RIVM) and the abnormal earnings growth model (AEGM) and their relative accuracy to observed stockprices. Adding to previous research, we investigate their performance in relation to the OMX30 index. What is more, we test how the performance of each model is affected by an extension of the forecast horizon. The study finds that AEGM outperforms the other models, both before and after extending the horizon. Our analysis was conducted by looking at accuracy, spread and the inherent speculative nature of each model. Taking all this into account, RIVM outperforms the other models. In this sense, one can question the rationale behind investor’s decision to primarily use the discounted cash flow model in equity valuation.
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Haboub, Ahmad. "Essays on equity valuation and accounting conservatism for insurance companies." Thesis, Brunel University, 2017. http://bura.brunel.ac.uk/handle/2438/15823.
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This thesis contributes to the literature in the finance and accounting field throughout its three empirical chapters. The first empirical chapter contributes to the literature on accounting conservatism in several ways; first, it investigates the accounting conservatism of US insurance companies using four measures, namely, non-operating accruals, skewness of earnings and cash flows, book to market ratio and asymmetric timeliness measures. Second, this paper compares these four measures in order to determine the association and differences between them. Finally, the level of accounting conservatism of the insurance companies is compared to that of a sample of commercial banks to check whether they have similar levels of accounting conservatism. The results of the first chapter suggest that the changes in accounting performance, as measured by return over assets, can be partly explained by accounting conservatism, since it is measured by the accumulation of non-operating accruals, skewness of operating cash flow and accruals, book to market ratio, adjusted book to market ratio and Basu's asymmetric measure. All of these four measures give robust evidence that insurance companies' accounts tended to be conservative for the whole sample period, and that the level of conservatism has risen over the years. More interestingly, a t test for the differences in means suggests that accruals conservatism show on average a higher level of accounting conservatism than book value conservatism does. Finally, our results, based on a constant sample consist of 92 banks and 46 insurance companies whose data are available for all the sample years; they suggest that both insurance companies and banks have similar levels of accounting conservatism due to their similar reporting characteristics. The second empirical chapter contributes to the existing literature on equity valuation in two ways. First, it confirms the importance of imposing linear information dynamics when predicting the equity values of insurance companies, because the restricted models result in fewer error metrics. Second, it highlights the role of the accruals components in the equity valuation of US insurance companies by demonstrating that the incorporation of accrual components in the residuals income valuation model suggested by Ohlson (1995) has smaller error metrics than those of aggregate net income. Our results are based on a sample of US insurance companies, which consists of 718 firm-year observations over the period from 2001 to 2012. For instance, our results suggest that total accruals, changes in insurance reserve, changes in account receivables, and deferred acquisition costs have an incremental ability to predict equity market value over abnormal earnings and book values. Furthermore, the predictive ability of changes in insurance reserves is higher than the predictive ability of changes in account receivables and the change in deferred acquisition costs without imposing the LIM structures. However, when the LIM structure is imposed the predictive ability of changes in deferred acquisition costs is higher than the predictive ability of both changes in accounts receivable and changes in insurance reserves. Our final empirical chapter contributes to the literature on accounting anomalies by investigating the value to price anomaly (V/P), where the fundamental value (V) is estimated using the residual income valuation model. Motivated by the findings of Hwang and Lee (2013), Fama and French (2015), and Fama and French (2016), Chapter Four asks whether V/P strategies reflect the risks factor or whether this is better explained by market inefficiency, and whether Fama and French's five-factor model can explain the excess return of V/P. To answer the previous questions we use data from the merger of COMPUSTAT, CRSP, I/B/E/S for all the non-financial firms listed in AMEX, NYSE, and NASDAQ during the period from 1987 to 2015. Our findings suggest that the V/P ratio is positively correlated to future stock returns after controlling for several firm characteristics, which are known to be proxies of common risks. Our results indicate that the omission of risk factors is not likely to be an explanation of the V/P effect. To answer the second question, we compare the performances of different asset pricing models by calculating the GRS F-statistics. Our findings clearly indicate that the five-factor model of Fama and French performs better than either the CAPM or the traditional Fama and French three factor model. These results confirm that the excess returns of V/P strategy vary due to the differences in size, the B/M ratio, operating profit and betas across quintile portfolios. However, these factors cannot explain all the variation in excess returns; moreover, the stocks in the high V/P may be riskier than the stocks in the low V/P portfolios in certain other dimensions.
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Choi, Young-Soo. "The reliability and the applicability of the residual income-based valuation model : theoretical augmentation of the linear information dynamics model and its validity compared with Ohlson and Edwards-Bell-Ohlson approaches." Thesis, Lancaster University, 2002. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.403802.
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Costi, Ricardo Miguel. "Determinantes do custo de capital implícito das empresas negociadas na Bovespa." Universidade do Vale do Rio do Sinos, 2008. http://www.repositorio.jesuita.org.br/handle/UNISINOS/2827.
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O objetivo deste estudo foi identificar possíveis determinantes do custo de capital implícito nas empresas brasileiras de capital aberto, no período de 2001 a 2005. Primeiramente foi calculado o custo de capital implícito para cada empresa da amostra, procedendo-se após esta etapa, à escolha e à verificação dos possíveis determinantes (características de empresas) com poder de explicar esse custo de capital implícito. Define-se por custo de capital implícito, a taxa de retorno que faz os fluxos de caixas projetados igual ao valor corrente da ação. Para este cálculo foi utilizado o modelo de avaliação pelo lucro residual, também conhecido como modelo de Edwards-Bell-Ohlson (EBO) e a previsão dos lucros fornecida pelos analistas de mercado (I/B/E/S) como forma de estimar os fluxos de caixa projetados. Os determinantes constituem-se nas variáveis indicadas pela literatura financeira e que demonstraram relação explicativa com o custo de capital ou o retorno das ações. Foram selecionadas 15 variáveis, dividas em c
The purpose of this study was to identify the possible determining factors of the implied cost of capital in Brazilian listed companies from 2001-2005. First, the implied cost of capital for each company within the sample was calculated, after which the possible determining factors (company characteristics) with the predicting power to explain this implied cost of capital were selected. The implied cost of capital is defined as a return rate that makes discounted cash flow equal to the stock current value. For this calculation, the residual income model was used, also known as Edwards-Bell-Ohlson (EBO) model along with the earnings forecast given by market analysts (I/B/E/S) as a way to estimate the discounted cash flow. The determining factors are variables indicated by financial literature and demonstrate the explainable relationship with capital cost or the stocks return. Fifteen (15) variables were selected and then divided into five groups: volatility, leverage, information environment, earnings variabil
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Hjelström, Tomas. "The closed-end investment company premium puzzle : model development and empirical tests on Swedish and British data." Doctoral thesis, Handelshögskolan i Stockholm, Redovisning och Finansiering (B), 2007. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-480.
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For decades, business press and researchers have observed and investigated the premiums/discounts on closed end investment companies. Proposed explanations for the phenomenon have been poor performance, high expenses (due to agency relationships), inefficient internal capital markets and excess volatility in the returns of the shares of the closed-end investment companies. Some, but not conclusive, empirical evidence support these theories. Most empirical evidence is based on American data. This study uses British and Swedish data on closed end investment companies. Some, but not conclusive, empirical evidence support these theories. Most empirical evidence is based on American data. This study uses British and Swedish data on closed end investment companies from 1972 – 2004 to investigate the premiums/discounts. Three areas of explanations are examined: performance, agency costs and diversification. In contrast to previous studies this study uses detailed data on quoted and unquoted securities respectively to investigate the relationship between performance and premiums/discounts. Evidence is found for a relationship between the performance on unquoted securities and premiums/discounts, but not for quoted securities. Indications that measurement biases in unquoted securities are properly priced are also found. The agency problem is analyzed in two ways, formal and controlling power, to investigate if actions taken by the company substantiating agency behavior have additional effects on prices. Such actions are measured as large investments in other portfolio companies (controlling power). The empirical evidence suggests that the existence of formal power creates additional discounts. The marginal effect on discounts is even deeper when proposed agency actions are identified. Diversification is argued to decrease the value of a portfolio of securities when heterogeneous beliefs are present. This study provides evidence that portfolio diversification deepens discounts.Diss. Stockholm : Handelshögskolan, 2007
Books on the topic "Residual Income Model"
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Reichert, Jörg. Das Residual-income-Model: Eine kritische Analyse. Frankfurt am Main: Lang, 2007.
Find full textBook chapters on the topic "Residual Income Model"
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Zhang, Guochang. "Accounting Measures of Value Generation: The Residual Income Model." In Accounting Information and Equity Valuation, 1–17. New York, NY: Springer New York, 2013. http://dx.doi.org/10.1007/978-1-4614-8160-7_1.
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Pimentel, Liliana Marques, and Susana Margarida Faustino Jorge. "Earnings Quality and Firm Valuation." In International Financial Reporting Standards and New Directions in Earnings Management, 1–31. IGI Global, 2019. http://dx.doi.org/10.4018/978-1-5225-7817-8.ch001.
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The quality of earnings is a summary metric in firm performance evaluation and a focal question to assess the quality of accounting information. A high-quality earnings figure will reflect a firm's current operating performance, being a good indicator of future operating performance; it also accurately annuitizes the intrinsic value of the firm. The multidimensional nature of the earnings quality (EQ) concept has given form to a multiplicity of constructs and measures. This chapter offers a systematic literature review on EQ and its implication on firm value. On the one hand, it discusses the different existent definitions of EQ and the multidimensional nature of the concept; on the other hand, it highlights a “new” EQ perspective taking into account the virtuosities of the residual income model. An empirical model is proposed that reinterprets rebuilding the linear information dynamics in relation to market value added and captures, in a composite measure, the three-dimensional facet of the EQ concept: persistence, predictability, and informativeness of earnings.
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Outa, Erick R., and Nelson M. Waweru. "IFRS Convergence and Revisions." In Advances in Finance, Accounting, and Economics, 169–90. IGI Global, 2016. http://dx.doi.org/10.4018/978-1-4666-9876-5.ch009.
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This chapter is aimed at examining the impact of IFRS convergence and revisions on the financial statements of companies listed in East Africa. This was achieved by determining whether firms report losses (LNEG) when they occur (timely loss recognition) or report small positive income (SPOS) or whether incomes reported exhibit variability in net income (NI) over time. Simultaneously, the chapter tests whether there is any influence of corporate governance on these three measures which are considered indicators of financial reporting quality. Four models applying GLS random effects are applied on 520 firm year observations for firms listed in Nairobi Securities Exchange (NSE) between 2005 and 2014. The result shows that a positive coefficient on frequency of large losses reported in the finding interpreted as firms with converged and revised IFRS recognize large losses (LNEG) as they occur. The findings also show a negative coefficient on small positive income (SPOS) interpreted as firms applying non-converged and revised standards manage earnings towards small positive amounts more than firms applying converged standards. The post convergence\revisions are significant for Chi, R2 and the residual which suggest that variability in net income (NI) improved in the post convergence period while corporate governance show insignificant mixed coefficient with the three indicators.
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Antonio Mayoral Chavando, José, Valter Silva, Danielle Regina Da Silva Guerra, Daniela Eusébio, João Sousa Cardoso, and Luís A.C. Tarelho. "Review Chapter: Waste to Energy through Pyrolysis and Gasification in Brazil and Mexico." In Gasification [Working Title]. IntechOpen, 2021. http://dx.doi.org/10.5772/intechopen.98383.
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Millions of tons of forest residues, agricultural residues, and municipal solid waste are generated in Latin America (LATAM) each year. Regularly, municipal solid waste is diverted to landfills or dumpsites. Meanwhile, forest and agricultural residues end up decomposing in the open air or burnt, releasing greenhouse gases. Those residues can be transformed into a set of energy vectors and organic/chemical products through thermochemical conversion processes, such as pyrolysis and gasification. This book chapter provides information on current examples of gasification on large scale in the world, which typically operate at 700°C, atmospheric pressure, and in a fluidized bed reactor. The produced gas is used for heat and energy generation. Whereas pyrolysis at a large scale operates around 500°C, atmospheric pressure, and in an inert atmosphere, using a fluidized bed reactor. The produced combustible liquid is used for heat and energy generation. The decision of using any of these technologies will depend on the nature and availability of residues, energy carries, techno-socio-economic aspects, and the local interest. In this regard, the particular situation of Brazil and Mexico is analyzed to implement these technologies. Its implementation could reduce the utilization of fossil fuels, generate extra income for small farmers or regions, and reduce the problem derived from the accumulation of residues. However, it is concluded that it is more convenient to use decentralized gasification and pyrolysis stations than full-scale processes, which could be an intermediate step to a large-scale process. The capabilities of numerical models to describe these processes are also provided to assess the potential composition of a gas produced from some biomass species available in these countries.
Conference papers on the topic "Residual Income Model"
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Zaiqiang Huo. "Data mining: The investment value analysis on China's bank stocks based on residual income model." In 2014 IEEE Workshop on Electronics, Computer and Applications (IWECA). IEEE, 2014. http://dx.doi.org/10.1109/iweca.2014.6845622.
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Liu, Yanping, and Sha Liu. "The Pricing Model in the Foreign Mergers and Acquisitions of State-Owned Shares Based on Residual Income Valuation Model and Real Option Pricing Method." In 2010 International Conference on Management and Service Science (MASS 2010). IEEE, 2010. http://dx.doi.org/10.1109/icmss.2010.5576473.
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Brust, Frederick W., and Paul M. Scott. "Weld Residual Stresses and Primary Water Stress Corrosion Cracking in Bimetal Nuclear Pipe Welds." In ASME 2007 Pressure Vessels and Piping Conference. ASMEDC, 2007. http://dx.doi.org/10.1115/pvp2007-26297.
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There have been incidents recently where cracking has been observed in the bi-metallic welds that join the hot leg to the reactor pressure vessel nozzle. The hot leg pipes are typically large diameter, thick wall pipes. Typically, an inconel weld metal is used to join the ferritic pressure vessel steel to the stainless steel pipe. The cracking, mainly confined to the inconel weld metal, is caused by corrosion mechanisms. Tensile weld residual stresses, in addition to service loads, contribute to PWSCC (Primary Water Stress Corrosion Cracking) crack growth. In addition to the large diameter hot leg pipe, cracking in other piping components of different sizes has been observed. For instance, surge lines and spray line cracking has been observed that has been attributed to this degradation mechanism. Here we present some models which are used to predict the PWSCC behavior in nuclear piping. This includes weld model solutions of bimetal pipe welds along with an example calculation of PWSCC crack growth in a hot leg. Risk based considerations are also discussed.
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Li, J., T. Chaise, D. Nélias, S. Taheri, V. Robin, Ph Gilles, and G. Douchet. "A numerical model to predict residual stresses induced by ultrasonic shot peening treatment of Inconel 600." In CONTACT AND SURFACE 2011. Southampton, UK: WIT Press, 2011. http://dx.doi.org/10.2495/secm110071.
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Wang, Xiaoqing, and Y. Kevin Chou. "A Method to Estimate Residual Stress in Metal Parts Made by Selective Laser Melting." In ASME 2015 International Mechanical Engineering Congress and Exposition. American Society of Mechanical Engineers, 2015. http://dx.doi.org/10.1115/imece2015-52386.
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Accurate evaluation of residual stresses in structures is very important because they play a crucial role in the mechanical performance of the components. As residual stresses can be introduced into mechanical components during various thermal or mechanical processes such as heat treatment, forming, welding and additive manufacturing. As an additive manufacturing method, selective laser melting (SLM) has become a powerful tool for the direct manufacturing of three dimensional nano-composite components with complex configurations directly from powders using 3D CAD data as a digital information source and energy in the form of a high-power laser beam. Therefore, the application of the SLM technology is necessary to manufacture Inconel 718 superalloy, which has been widely employed in industrial applications due to its remarkable properties. Hence, it is critical to measure and reduce the residual stress in the Inconel 718 parts formed by SLM due to rapid cooling and reheating. In this study, the process-induced residual stress in Inconel 718 parts produced by selective laser melting (SLM) has been investigated using the model established by Carlsson et al., which is an instrumented indentation technique based on the experimental correlation between the indentation characteristic and the residual stress. The samples were sectioned from an Inconel 718 block along its build direction, and subsequently prepared with general metallographic methods for Vickers indentation and measurements by optical microscopy. The residual stress on the scanning surface (Z-plane) and side surface (X-plane) at different build heights have been evaluated in micro-scale with the contact area, indentation hardness and the equai-biaxial residual stress and strain fields. The results show that the residual stress is unevenly distributed in the SLMed parts with some areas have an maximum absolute value around 350 MPa, about 30 percent of the yield strength of Inconel 718. The average residual stresses in the Z-plane and X-plane samples are tensile and compressive, respectively. Besides, the residual stress does not change significantly along the building direction of the part. Moreover, the Vickers hardness of the parts built with the SLM process is comparable to the literature, and the X-plane surface has a higher hardness than the Z-plane surface. The microstructures and texture evolution of the SLM processed Inconel 718 alloy are also investigated. The X-plane shows the columnar structure due to the large temperature gradient while the Z-plane presents the equiaxed structures. The random texture is shown in the SLM processed specimens.
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Feng, Yixuan, Zhipeng Pan, Xiaohong Lu, and Steven Y. Liang. "Analytical and Numerical Predictions of Machining-Induced Residual Stress in Milling of Inconel 718 Considering Dynamic Recrystallization." In ASME 2018 13th International Manufacturing Science and Engineering Conference. American Society of Mechanical Engineers, 2018. http://dx.doi.org/10.1115/msec2018-6386.
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A new analytical model is proposed to predict the residual stress in the milling process of Inconel 718 based upon the mechanics analysis of microstructural evolutions. The model proposes to quantify the effects of dynamic recrystallization process on the material flow stress under combined thermal-mechanical loadings in machining. Physics-based mechanistic model is applied to predict the percentage of dynamic recrystallization and the grain size as functions of the milling process parameters and materials constative attributes. The variation of grain size is expected to alter the yield stress, and such dependency relationship is applied to predict the flow stress, which is also dependent on strain, strain rate, and temperature. The time-varying trajectory of residual stress is then predicted at each milling rotation angle through the transformation from milling to equivalent orthogonal cutting, the calculation of stress distribution in loading process, and the stress change during relaxation. The results of analytical model are validated through numerical prediction. The residual stress profile predicted by proposed analytical model matches better with results from numerical model comparing with model without consideration of dynamic recrystallization, especially within subsurface area, with improved accuracy of peak compressive residual stress prediction.
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Mathew, Jose, Allesu K., Shravani Srisailam, K. P. Somashekhar, Prakash Naidu P., and P. S. Suvin. "Estimation of Residual Stresses and Crater Shape in µ-EDM by Finite Element Method." In ASME 2012 International Mechanical Engineering Congress and Exposition. American Society of Mechanical Engineers, 2012. http://dx.doi.org/10.1115/imece2012-86100.
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Micro-Electric Discharge Machining (μ-EDM) is the process of machining electrically conductive materials in the form of micro-size craters by using precisely controlled sparks that occur between tool electrode and workpiece in the presence of dielectric fluid. The present paper attempts to predict the accurate model for thermal behavior of the EDM process on commercially available Inconel 718. The temperature gradients are crucial in identifying the zones of high temperature and high residual stresses. 3-Dimensional, transient coupled (structural and thermal) analysis is modeled for Inconel 718 workpiece material to estimate the residual stresses due to spark erosion and also to study the crater morphology. The residual stresses are higher at the centre of the crater and it is decreasing when move far from the centre. The simulated results are compared with the experimental results. Both the experimental and the simulated results are in good agreement.
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Yang, Y. P., F. W. Brust, and J. Oh. "Creep Behavior of a Bimetallic Welded Joint in a Nuclear Piping System." In ASME 2003 Pressure Vessels and Piping Conference. ASMEDC, 2003. http://dx.doi.org/10.1115/pvp2003-2045.
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The information of the creep behavior of a thick welded joint is very important to secure the safety of high temperature service devices. The creep damage development and behavior are very complex; hence it is time consuming to practice the experiment and theoretical analyses. In this paper a simple accurate model was developed to analyze the creep behavior of weld metal and heat-affected zone on a thick bimetallic welded pipe. The pipe was made by welding an A508-class-2 carbon steel pipe to a 304 stainless steel pipe with a shielded metal arcwelding process using INCONEL 182 electrodes. Virtual fabrication technology weld modeling tools (VFT™) developed jointly by Battelle and Caterpillar was used to obtain welding-induced residual stress. The weld residual stress was read into the creep model as initial stress condition for creep analysis. A temperature 1000°F was applied on the bimetallic weld model with inside pressure and axial loading. The simulation results indicated that creep strains were not uniform through the weld joint due to weld residual stresses, materials creep behavior and geometry changes. Some stress and strain concentrations were found on the A508 steel near buttering region, which results in axial cracks.
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Moazami, Nima, Frank Abdi, Gregory N. Morscher, Cody Godines, Larry Zawada, George Jefferson, and Jalees Ahmed. "Design Framework for Optimized Multifunctional Coatings." In ASME Turbo Expo 2020: Turbomachinery Technical Conference and Exposition. American Society of Mechanical Engineers, 2020. http://dx.doi.org/10.1115/gt2020-15068.
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Abstract An ICME (Integrated Computational Material Engineering) and lifing model/method is developed for optimizing multifunctional coatings Atmospheric Plasma Spray (APS) process of metallic TBC (Thermal Barrier Coating) system. Optimized TBC performance was achieved by minimizing thermal conductivity and residual stresses/strains during APS utilizing multiphysics-based multi-objective topology optimization methodology, and virtual design of experiment (DOE), surrogate meta modeling methodology. Thermal conductivity and residual strains were minimized 41% and 27%, respectively, for APS 8YSZ TBC with MCrAlY bond over Waspaloy substrate considering as variables yttria (mol.%), number of layers, total thickness, substrate initial temperature, and coating initial temperature. Durability and Damage Tolerance (D&DT) analysis of Metallic bonded TBC dogbone specimen was performed using Multi-Scale Progressive Failure Analysis (MS-PFA). The objective was to determine the Remaining Useful Life (RUL) of Metal/TBC (8YSZ, Bond, Inconel-718) system under Low Cycle Fatigue (LCF) in-service loading at 900°C. The multi-scale multi-layer TBC modeling considered Thermal Growth Oxidation (TGO) in bond coat, and recession of top coat. Prediction was validated by Rig testing; TGO measurement Progressive damage analysis revealed that failure is due to tension and out of plane shear, delamination growth due to when recession penetrates bond. The results showed that predicted fatigue life compared well to experimental observations.
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Yoshioka, Yomei, Daizo Saito, Rie Sumiya, Kazutoshi Ishibashi, Shoko Ito, Daisuke Kobayashi, Akihiro Itou, Masamichi Miyabe, and Yukio Kagiya. "Effects of Environments and Shot Peening on Creep and Creep-Fatigue Behaviors of Ni-Fe-Base Superalloy Inconel®Alloy 706." In ASME Turbo Expo 2012: Turbine Technical Conference and Exposition. American Society of Mechanical Engineers, 2012. http://dx.doi.org/10.1115/gt2012-68313.
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Fleet leader machines with non-shot-peened discs made of Inconel® alloy 706 were experienced to have cracks in the first stage gas turbine wheels. These were inter-granular cracking and observed to be highly stressed locations with less potential for oxidation, which is thought to be quasi-brittle inter-granular cracking due to stress induced atmospheric oxygen penetration, so called, hold-time cracking. To recognize this phenomenon, creep and creep-fatigue tests with smooth and notched specimens were conducted at 600 and 650°C in air and vacuum and confirmed the environmental effects on those lives and fracture modes. The effectiveness of shot peening which was used as one of the countermeasures for this phenomenon was verified by using the creep-fatigue tests. The durability was also evaluated by thermal and stress aging tests at 450 and 500°C up to around 104 hours. Little relaxations were observed during the thermal agings after the initial rapid relaxation of the surface residual stress, but the effects of the loading stresses were observed above the yielding stress at each temperature.